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Israel Invoice Template (Tax Invoice): Field Reference

This is an editable layout for an Israeli tax invoice (חשבונית מס) with VAT at 18%, the rate in force since 1 January 2025. It adds the fields that matter most under the Israel Tax Authority's "Invoices Israel" model (חשבוניות ישראל): your dealer number, the customer's licensed dealer number and the 9-digit allocation number (מספר הקצאה). Since 1 June 2026, a business customer who is a licensed dealer (עוסק מורשה) can deduct the input VAT on a tax invoice above NIS 5,000 before VAT only if the invoice carries an allocation number. You request that number from the Israel Tax Authority, through accounting software connected to the Authority or its free web application, before you give the customer the invoice. This template cannot request it for you, and neither can InvoiceQuickly. The layout downloads as an editable HTML file you complete in your browser and then print or save as PDF.

Preview this editable document

Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.

What This Template Includes

  • Your dealer number (מספר עוסק) or company number
  • Customer's licensed dealer number (needed for an allocation number)
  • Document type, e.g. tax invoice (חשבונית מס)
  • Allocation number (מספר הקצאה), 9 digits, above NIS 5,000 before VAT
  • Amount before VAT in shekels (₪)
  • VAT at 18% and amount in shekels (₪)

How to fill in this Israel Invoice (Tax Invoice)

  1. Download the template. It opens as an editable HTML file in your browser.
  2. Replace each bracketed field with your details. Totals are not calculated for you, so check the arithmetic.
  3. Print it or save it as a PDF from your browser. InvoiceQuickly does not create or store this document type.

Recommended Payment Terms

Agree the payment period with your customer in writing and show the due date and your bank details (bank, branch and account number) on the invoice. Keep the due date separate from the allocation step: the allocation number is about the customer's VAT deduction, not about when you get paid, so request it when you issue the invoice rather than when payment arrives. Israel has its own rules on payment periods to suppliers. Confirm which apply to your contract with an adviser before you add a late-payment clause.

Tax Information

Israel's standard VAT rate is 18% for transactions whose tax point falls on or after 1 January 2025, up from 17% (Israel Tax Authority interpretation instruction 1/2025, 5 December 2024). Show the amount before VAT, the VAT and the total, for example ₪15,000 + ₪2,700 VAT = ₪17,700. The allocation-number rule applies to tax invoices that include VAT: an invoice that contains only exempt or zero-rated transactions does not get one. InvoiceQuickly applies one tax percentage per invoice, so you can enter 18% and it adds VAT on top, and it copies saved business and selected-client tax IDs to new invoice PDFs, has no allocation-number field, is English-only, and its invoice editor does not offer shekels as a currency. Treat this page as a layout and checklist, not as advice on your VAT position.

Industry context (2026)

The Israel Tax Authority began the Invoices Israel model on 5 May 2024 under the Economic Efficiency Law for the 2023 and 2024 budget years. The deduction threshold has fallen in stages: NIS 20,000 before VAT in 2025, NIS 10,000 from 1 January 2026 and NIS 5,000 from 1 June 2026 (VAT execution instruction 10/2025, 7 December 2025). From 2025 the Authority reviews each request and may refuse a number when it has reasonable grounds to suspect an invoice was issued unlawfully, with a hearing process for the supplier. For cash-basis transactions, a supplier can request an allocation approval on a preliminary document such as a transaction invoice or pro forma, which states that it is not an allocation number and cannot be used to deduct input VAT.

Worked example

Illustrative example: Lior Cohen, a licensed dealer working as a web developer in Haifa, invoices Merkaz Tech Ltd, also a licensed dealer, on 12 October 2026. Lines: 40 hours of development at ₪350 = ₪14,000; hosting setup ₪1,000. Amount before VAT ₪15,000, VAT at 18% ₪2,700, total ₪17,700. Because ₪15,000 is above the NIS 5,000 threshold in force since 1 June 2026 and Merkaz Tech wants to deduct the VAT, Lior requests an allocation number before handing over the invoice. In the Tax Authority's web application Lior enters the invoice number, Merkaz Tech's dealer number, ₪15,000, ₪2,700 and the date, receives a 9-digit number and writes it in the allocation number field. Without that number, Merkaz Tech could not deduct the ₪2,700 input VAT. In a smaller variant, a ₪4,000 invoice (₪720 VAT, ₪4,720 total) is below the threshold, so no allocation number is needed, though Lior may still request one if the customer asks.

Common mistakes to avoid

Using last year's threshold

The threshold fell from NIS 20,000 to NIS 10,000 on 1 January 2026 and to NIS 5,000 on 1 June 2026. Check the amount before VAT, not the total.

Missing the customer's dealer number

The allocation request needs the customer's licensed dealer number. Collect it when you take the order.

Amounts that differ from the allocation request

The customer can verify the number against the amount, supplier and customer you reported. Any mismatch undermines their deduction.

Still charging 17% VAT

Transactions with a tax point on or after 1 January 2025 carry 18% VAT.

Treating an allocation approval as an allocation number

An approval on a pro forma or transaction invoice is not an allocation number and cannot be used to deduct input VAT. The tax invoice needs its own number.

Invoicing Tips

  • 1Ask a business customer for their licensed dealer number (מספר עוסק מורשה) before you invoice. You need it to request an allocation number.
  • 2Check the amount before VAT against the threshold in force on the invoice date: NIS 20,000 in 2025, NIS 10,000 from 1 January 2026, and NIS 5,000 from 1 June 2026.
  • 3If you write invoices by hand or outside connected software, use the Israel Tax Authority's web application. Enter the invoice number, the customer's dealer number, the amount before VAT, the VAT and the date, then copy the 9-digit number onto the invoice.
  • 4You may request an allocation number for an invoice of any amount, so a customer who asks for one on a small invoice can still get it.
  • 5Customers can check an allocation number and the invoice details against what you reported, using the Authority's verification service. Make sure the amounts on the invoice match your request exactly.

Related Resources

Frequently Asked Questions

What is an allocation number on an Israeli invoice?

A 9-digit number the Israel Tax Authority assigns to a specific tax invoice under the Invoices Israel model. The supplier requests it through connected accounting software or the Authority's web application and shows it on the tax invoice. A business customer needs it to deduct the input VAT on invoices above the threshold.

What is the allocation number threshold in 2026?

Per Israel Tax Authority VAT execution instruction 10/2025 (7 December 2025), it applies to tax invoices above NIS 10,000 before VAT from 1 January 2026 and above NIS 5,000 before VAT from 1 June 2026. In 2025 the threshold was NIS 20,000.

What happens if a tax invoice has no allocation number?

Above the threshold, the customer cannot deduct the input VAT on that invoice. The Tax Authority's director has discretion to allow the deduction only in exceptional circumstances, where the Authority's own systems could not issue a number for technical reasons.

What is the VAT rate in Israel?

18% for transactions whose tax point is on or after 1 January 2025. It was 17% before that date. Which rate applies to a transaction that spans the change depends on its tax point under the VAT Law.

Can InvoiceQuickly issue Israeli invoices with an allocation number?

No. InvoiceQuickly is not connected to the Israel Tax Authority, cannot request allocation numbers, copies saved tax IDs to new invoice PDFs, is English-only and does not offer shekels in its invoice editor. Use this downloadable layout with the Authority's web application, or accounting software connected to the Authority.